World Bank2017-06-142017-06-142011-09-18https://hdl.handle.net/10986/27154Sustainable economic growth and strong institutions are interlinked, and the present report summarizes recent economic and fiscal developments in West Bank and Gaza (WB&G) as well as providing a broad overview of institutional accomplishments to date. The present report begins by discussing the apparent slowdown in economic growth in WB&G and the current fiscal crisis facing the Palestinian Authority (PA)-resulting partly from lower-than-expected external support this year. A further drop in donor funding would likely reduce growth, which would in turn further aggravate the fiscal situation in the coming year. A protracted fiscal crisis, in turn, risks jeopardizing the gains made in institution-building and thereby losing what has been painstakingly achieved over the past years. In addition, the report highlights that in order for the PA to sustain the reform momentum and its achievements in institution-building, remaining Israeli restrictions must be lifted and any reductions in international aid flows must be carefully calibrated and managed. Economic growth in WB&G has slowed down in 2011, and together with the shortfall in external financing, this has led to a fiscal crisis for the PA. Economic growth in WB&G remains robust but appears to be slowing due to economic and political uncertainty, so that the International Monetary Fund (IMF) has revised the projected real Gross Domestic Product (GDP) growth rate for 2011 from 9 down to 7 percent. Despite some improvement, unemployment remains stubbornly high and labor force participation low in WB&G.en-USCC BY 3.0 IGOACCOUNTABILITYACCOUNTINGACCOUNTING SYSTEMACCUMULATION OF ARREARSAGGREGATE SPENDINGALLOCATIONALTERNATIVE FINANCINGAMALGAMATIONANNUAL BUDGETINGANNUAL REPORTAUTONOMYBANK ACCOUNTSBANK FINANCINGBANKING SECTORBANKSBASIC SERVICESBENEFICIARIESBORROWINGBUDGET DEFICITBUDGET EXECUTIONBUDGET PREPARATIONBUDGET PROJECTIONSBUDGET REPORTINGBUDGET SUPPORTBUDGETARY REVENUESBUSINESS CONFIDENCECABINET OF MINISTERSCAPACITY BUILDINGCAPACITY-BUILDINGCAPITAL BASECAPITAL EXPENDITURESCAPITAL INVESTMENTCAPITAL REQUIREMENTCAPITAL REQUIREMENTSCAPITAL SPENDINGCASH BASISCENTRAL BANKCENTRAL CONTROLCENTRAL GOVERNMENTCHILD SUPPORTCIVIL SERVANTSCIVIL SERVICECIVIL SERVICE LAWCIVIL SOCIETY ORGANIZATIONSCONFLICTS OF INTERESTCORRUPTIONCOST OF LIVINGCREDIT FACILITIESDEBTDEFICITSDEPOSITSDIRECT FINANCIAL SUPPORTDOMESTIC REVENUEDONOR ASSISTANCEDONOR COORDINATIONDONOR FINANCINGDONOR FUNDINGECONOMIC ACTIVITYECONOMIC DEVELOPMENTECONOMIC GROWTHEDUCATION SERVICESEDUCATION SYSTEMEFFECTIVE GOVERNANCEELECTRICITY SERVICESEMPLOYMENTEQUAL ACCESSEXCHANGE RATEEXPENDITURE CONTROLEXPENDITURE MANAGEMENTEXTERNAL ASSISTANCEEXTERNAL AUDITEXTERNAL FINANCINGFINANCE MINISTRYFINANCIAL ACCOUNTABILITYFINANCIAL ACCOUNTSFINANCIAL DATAFINANCIAL INSTITUTIONSFINANCIAL MANAGEMENTFINANCIAL MANAGEMENT SYSTEMFINANCIAL REFORMSFINANCIAL SECTORFINANCIAL STATISTICSFINANCIAL SUPPORTFINANCING ARRANGEMENTSFINANCING NEEDFISCAL CRISISFISCAL DEFICITSFISCAL FRAMEWORKFISCAL IMPLICATIONSFISCAL POSITIONFISCAL STABILITYFISCAL STANCEFISCAL TRANSPARENCYFOREIGN ASSETSFOREIGN BANKSFOREIGN INVESTMENTFUNDS FOR CAPITAL EXPENDITURESGENERAL BUDGET SUPPORTGROSS DOMESTIC PRODUCTGROWTH RATEHEALTH CAREHEALTH INSURANCEHEALTH SECTORHEALTH SERVICESHEALTH SYSTEMSHEALTH WORKERSHUMAN RESOURCE MANAGEMENTHUMAN RIGHTSINCOME TAXINFORMATION TECHNOLOGYINFRASTRUCTURE SECTORINSTITUTIONAL CAPACITYINSTITUTIONAL DEVELOPMENTINSURANCEINTERNAL AUDITJOB CREATIONLABOR FORCE PARTICIPATIONLABOR FORCE SURVEYLACK OF ACCESSLACK OF INFORMATIONLAND ADMINISTRATIONLAWSLEGAL FRAMEWORKLIQUIDITYLOCAL GOVERNMENTLOCAL GOVERNMENT REVENUESMANDATESMEDIUM TERM FISCAL STRATEGYMENTAL HEALTHMINISTRY OF FINANCEMONETARY POLICYMUNICIPAL DEVELOPMENTMUNICIPALITIESNATIONAL DEVELOPMENTNATIONAL DEVELOPMENT PLANNATURAL RESOURCESNET LENDINGOPERATIONAL EXPENDITURESORGANIZATIONAL STRUCTUREPAYMENT OBLIGATIONSPENSION LIABILITIESPENSION REFORMPENSION SCHEMEPENSIONSPERFORMANCE MANAGEMENTPRIVATE INVESTMENTPRIVATE SECTORPRIVATE SECTOR GROWTHPRIVATE SECTOR INVESTMENTPROGRAM IMPLEMENTATIONPROGRAMSPROPERTY TAXPROPERTY TAXESPUBLIC ACCOUNTSPUBLIC ADMINISTRATIONPUBLIC EDUCATIONPUBLIC EMPLOYMENTPUBLIC EXPENDITUREPUBLIC EXPENDITURESPUBLIC FINANCESPUBLIC FINANCIAL MANAGEMENTPUBLIC INSTITUTIONSPUBLIC INVESTMENTPUBLIC SECTORPUBLIC SECTOR ACCOUNTINGPUBLIC SERVICEPUBLIC SERVICE EMPLOYMENTPUBLIC SPENDINGQUALITY ASSURANCEQUALITY OF SERVICESREAL GROWTHRECEIPTSREFORM AGENDAREFORM EFFORTSREFORM PROGRAMREFORM STRATEGIESREGULATORY FRAMEWORKRESERVE REQUIREMENTSRETIREMENTREVENUE MOBILIZATIONRISK MANAGEMENTSALARY PAYMENTSSANITATIONSAVINGSSECTOR POLICYSERVICE DELIVERYSOCIAL INSURANCESOCIAL POLICYSOCIAL PROTECTIONSOCIAL PROTECTION SECTORSTATE OWNED BANKSSTRATEGIC PRIORITIESSTRUCTURAL REFORMSTAX ADMINISTRATIONTAX BASETAX BREAKSTAX COLLECTIONTAX COLLECTIONSTAX REVENUESTAXPAYERSTELECOMMUNICATIONS EQUIPMENTTOTAL EXPENDITURESTRANSFER PAYMENTSTRANSPARENCYUNCERTAINTYUNEMPLOYMENTWAGE EXPENDITURESWAGESWATER SUPPLYReportWorld Bank10.1596/27154